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A factory was trying out a new process for producing one of

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A factory was trying out a new process for producing one of [#permalink] New post 13 Jun 2013, 15:06
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59% (02:16) correct 41% (01:34) wrong based on 173 sessions
A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.

Which of the following, if true, casts most doubt on the production managers' conclusion?

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.
E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.
[Reveal] Spoiler: OA

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Last edited by Zarrolou on 13 Jun 2013, 15:11, edited 1 time in total.
Renamed the topic, edited the question.
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Re: A factory was trying out a new process for producing [#permalink] New post 13 Jun 2013, 19:27
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A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.

Which of the following, if true, casts most doubt on the production managers' conclusion? - Conclusion is highlighted in Red Color
A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.- Close answers but incorrect because we don't want to compare the effectiveness of new process based on expectations

B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.- Typical Shell game option. It just states how new process reduced the production costs.

C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.- This statement conclusive weakens the argument by stating that new process was not the cause of reduced production cost. It was something else that cause the reduction in production cost. Correct

D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product. - OFS

E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes. - This statement strengthens the conclusion by adding one more info. Incorrect


Hope this helps many.

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Re: A factory was trying out a new process for producing [#permalink] New post 16 Jun 2013, 14:55
Thoughtosphere wrote:
A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.

Which of the following, if true, casts most doubt on the production managers' conclusion?

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.
E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.


Argument : production cost is decreased because of the new process.
Typical answer : No , it's not the new process but something else. Answer C does that.
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Re: A factory was trying out a new process for producing one of [#permalink] New post 18 Oct 2013, 22:35
This is a cause and effect question and once we understand the cause and effect its not too difficult to point out the answer choice.
cause - New process that was introduced.
Effect - Cost savings .

In order to weaken this cause effect relationship we need to either have another cause which could result in the effect or prove that the cause was not correct.

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
This is n Out of Scope answer choice

B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
Strengthens the conclusion based on the cause

C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
Alternate cause of reduction in costs - correct answer.

D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.
Out of scope answer choice.

E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes
Strengthens the conclusion based on the premise.

Kudos me if you like the post !!!!!!!!!!
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Re: A factory was trying out a new process for producing one of [#permalink] New post 09 Jan 2014, 09:00
akhil911 wrote:
This is a cause and effect question and once we understand the cause and effect its not too difficult to point out the answer choice.
cause - New process that was introduced.
Effect - Cost savings .

In order to weaken this cause effect relationship we need to either have another cause which could result in the effect or prove that the cause was not correct.

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
This is n Out of Scope answer choice

B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
Strengthens the conclusion based on the cause

C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
Alternate cause of reduction in costs - correct answer.

D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.
Out of scope answer choice.

E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes
Strengthens the conclusion based on the premise.

Kudos me if you like the post !!!!!!!!!!


They got me on B. I thought it was an alternate cause. Since they only did a few samples, then they would have fewer rejections and thus save money. This would not happen in large scale operation

Any comments?

Bumpingggg

Cheers!
J :)
Re: A factory was trying out a new process for producing one of   [#permalink] 09 Jan 2014, 09:00
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